Energy Markets

Energy markets are commodity markets that deal specifically with the trade and supply of energy. Energy markets tend to refer to an electricity market. Base-load power sources are the backbone of society. They are used to deliver power to billions of people around the world.

With government moving towards cleaner and greener energy, the 21st century could be powered by multiple sources.

Coal-powered stations are currently the main source of base load power. Nuclear power, which requires uranium, is up and coming. That said, with the ability to store an almost unlimited capacity, vanadium redox batteries offer potential as an alternative base load energy source. In case you haven’t heard about them, there’s a lot to like about VRBs. They are non-flammable, environmentally friendly, and maintain 90% of their capacity over 20 years.

We focus on the latest Energy Market news

With lots of potential future base load power sources, the energy market is likely to present multiple investment opportunities in the future. For that reason, rest assured, our editors are always one step ahead. They frequently analyse the movers and shakers in the energy market.

Watching the price of oil is like watching the price of bitcoin. Many are asking themselves when this rally will end. It’s extremely hard to predict future prices, especially those of commodities. But you’d have to agree that if the supply of oil continues to fall, then prices should continue to increase.

To break even next year, Saudi Arabia needs oil prices to stay above US$70 per barrel. I believe there’s an extremely low chance of oil prices staying above that level, let alone hitting it. That is, unless a major war breaks out in the Middle East. That’s why Saudi Arabia appears to want a bigger war in the region to drive crude prices sharply higher.

If Saudi Arabia and Iran went to war, crude oil would probably shoot significantly higher. I wouldn’t rule out US$100–200-per-barrel oil. If that happens, having plenty of exposure to oil stocks could be beneficial.

Copper prices have retreated once again. Currently, it’s down 0.8% to US$6,810 per tonne. But traders are looking to the future and in turn, the futures market. And some of the stakes are growing to extremes.

Move over iron ore, coal and oil. Commodities of the future include copper, cobalt and of course lithium. While you don’t hear the buzz surrounding it like you once did, the price of lithium has continued to climb throughout 2017.

Globally, we consume around 96 million barrels of oil every day. At this rate, worldwide reserves are estimated to dry up by 2039. Not far off at all. It’s the delicate balance of supply and demand that makes the crude oil price one of the best economic indicators. And for the past two years, it has been soaring.

The price of Brent Crude has climbed 2.13% overnight, reaching US$56.99 a barrel. While the benchmark WTI Oil price peaked over US$50 once more. The rise has been linked to a supposed deal between the Saudis and Russia.

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